Premji, Temasek pay $296m for stake in ICICI's life insurance unit
PremjiInvest - the family office of Wipro Enterprises chairman Azim Premji - and Singapore's Temasek Holdings have agreed to pay INR19.5 billion ($296 million) for a 6% stake in the life insurance unit of ICICI Bank.
PremjiInvest will take a 4% stake in ICICI Prudential Life Insurance, with Temasek taking a 2%, according to a release. ICICI Bank and its joint venture partner Prudential will continue to hold stakes of 68% and 26%, respectively. The transaction still requires regulatory approval.
ICICI Prudential is India's biggest private life insurance provider; in its most recent annual report it recorded revenue of INR613 billion for the 12 months ended March 2015 - up from INR546 billion the previous year - and net profit of INR112 billion, up from INR98 billion.
Several foreign investors have taken an interest in India's insurance sector this year, after the government raised limitations on foreign ownership in March. For example, in October, Nippon Life announced plans to raise its stake in Reliance Life Insurance to 49%, the maximum allowable after the rule change. At the same time, it agreed to boost its holding in Reliance Capital Asset Management and become a co-sponsor of the company.
PremjiInvest invests globally across a wide range of categories, including technology and consumer products. Activities this year include an $80 million Series C round for US mobile operating system developer Cyanogen; a INR2.16 billion commitment to Indian cosmetics developer Hygienic Research Institute; and leading an $82 million Series F round for US-based field service software developer ServiceMax.
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